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North and South abandoned canals, and settling ponds that were contaminated with metals, pesticides, PCBs, and organic compounds. Above ground storage tanks with unknown contents. Potential spill and disposal areas with unknown substances. Airplane maintenance structure with scrap metal, asphalt and concrete debris. Defense stockpile area with drums and heavy metals. Storage and automobile maintenance area with unknown substances. Storage areas with drums, contaminated stockpiled soil, and unknown substances. Construction yard and equipment storage area with unknown substances. According to an agreement signed between the State of California, Navy, and the Port in September 2003, (the "September 2003 Agreement"), the Port would be responsible for all the clean up measures necessary for preparing the Project Area for new development. In addition to the cleanup measures, disposal of buildings materials containing lead-based paint and asbestos requires special remediation measures too. The cleanup measures and the disposal of contaminated materials involve extraordinary costs. The Agency can use the redevelopment tools and tax increment funds to assist the Port with the cleanup measures. Factors That Prevent or Substantially Hinder the Economically Viable Reuse or Capacity of Buildings or Areas Age, obsolescence, deterioration, dilapidation or other physical conditions that prevent the highest and best use of property With approximately 67% of Project Area buildings characterized by deficient design, deterioration, and other health and safety hazards, obsolescence and dilapidation. These conditions pose great barriers to reusing former military facilities in their current condition, despite extraordinarily low lease rates and availability of space. Correcting deterioration will necessitate extensive repairs in many instances due to the age and extent of structural decay. According to Lee Hieber, the Controller at the Port of Stockton, the Port does not budget for annual maintenance for all of the buildings. The budget also does not include remediation measures for lead-based paint, asbestos, or any other hazardous materials. In addition, the budget only accounts for repairs for occupied buildings. Without proper and regular maintenance, the vacant buildings will continue to decay. ROSENOW SPEVACEK GROUP, INC REDEVELOPMENT AGENCY OF THE CITY OF STOCKTON MAY 3, 2004 ROUGH AND READY ISLAND REDEVELOPMENT PROJECT - B-16 - PRELIMINARY REPORT